Target is considered one of the big retailers in America. After years of smashing records and spreading out, Target did the inevitable; it began to expand internationally. In 2011, Target began to open stores in Canada. However, after more than two years of consistent financial loss, Target has decided that the Canadian market just isn't for the chain.
In an announcement made on Thursday, Target revealed that it would discontinue store operations in Canada and would be closing its subsidiary, Target Canada.
"After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021," said Brian Cornell, Target's corporate chairman and CEO. Cornell and the board of directors both agreed that "it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our U.S. business."
According to Cornell, Target would begin pursuing the process of liquidating Target Canada's assets and helping employees get through the next few weeks. The liquidation will likely cost Target more than $500 million to complete. Most of Target's Canadian employees would receive at least 16 weeks of compensation and benefits, according to CTV News.
Target also announced that Target Corp. will operate as a single entity that includes all U.S. Operations.
At the time of the announcement, Target Canada Co. had 133 stores open in Canada and employed more than 7,000 people.
